Free Essay

Economics

In: Business and Management

Submitted By pujalin
Words 2112
Pages 9
Budget 16-17

HIGHLIGHTS OF UNION BUDGET 2016-17
Growth of Economy accelerated to 7.6% in 2015-16.
India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.
Robust growth achieved despite very unfavourable global conditions and two consecutive years shortfall in monsoon by 13%
Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years.

ROADMAP & PRIORITIES
'Transform India' to have a significant impact on economy and lives of people.
Government to focus on –




ensuring macro-economic stability and prudent fiscal management. boosting on domestic demand continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better.

Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks.

Focus on Vulnerable sections through:
1. Pradhan Mantri Fasal Bima Yojana
2. New health insurance scheme to protect against hospitalisation expenditure
3. facility of cooking gas connection for BPL families

FISCAL DISCIPLINE






Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.
Revenue Deficit target from 2.8% to 2.5% in RE 2015-16
Total expenditure projected at Rs. 19.78 lakh crore
Plan expenditure pegged at Rs. 5.50 lakh crore under Plan, increase of 15.3%
Non-Plan expenditure kept at Rs. 14.28 lakh crores

2/29/2016

Downloaded from www.exampundit.in

1

Budget 16-17

Tax & Cess:












Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy
‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment Cess’ and rate increased from Rs.200 per tonne to Rs.400 per tonne.
Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs.
Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016.
Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%.
13 cesses, levied by various Ministries in which revenue collection is less than Rs. 50 crore in a year to be abolished.
For non-residents providing alternative documents to PAN card, higher TDS not to apply.
Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.
Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs. 10 lakh per annum.
Raise the ceiling of tax rebate under section 87A from Rs.2000 to Rs.5000 to lessen tax burden on individuals with income upto Rs.5 lacs.
Increase the limit of deduction of rent paid under section 80GG from Rs.24000 per annum to
Rs.60000, to provide relief to those who live in rented houses.

AGRICULTURE AND FARMERS’ WELFARE











Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore
‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.
Implementation of 89 irrigation projects under AIBP, which are languishing for a long time, will be fast tracked
A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about
Rs. 20,000 crore
Programme for sustainable management of ground water resources with an estimated cost of Rs.
6,000 crore will be implemented through multilateral funding
5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA
Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.
2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years
Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain
Development in North East Region'.
Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets 2/29/2016

Downloaded from www.exampundit.in

2

Budget 16-17





Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs. 19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.
To reduce the burden of loan repayment on farmers, a provision of Rs. 15,000 crore has been made in the BE 2016-17 towards interest subvention
Allocation under Prime Minister Fasal Bima Yojana Rs. 5,500 crore.

Rs. 850 crore for four dairying projects –
1.
2.
3.
4.

‘Pashudhan Sanjivani’,
‘Nakul Swasthya Patra’,
‘E-Pashudhan Haat’ and
National Genomic Centre for indigenous breeds

RURAL SECTOR
1. Allocation for rural sector - Rs. 87,765 crore.
2. Rs. 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission
3. Every block under drought and rural distress will be taken up as an intensive Block under the Deen
Dayal Antyodaya Mission
4. A sum of Rs. 38,500 crore allocated for MGNREGS.
5. 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
6. 100% village electrification by 1st May, 2018.
7. A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.
8. National Land Record Modernisation Programme has been revamped.
9. New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of Rs. 655 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE









Allocation for social sector including education and health care – Rs.1,51,581 crore.
Rs. 2,000 crore allocated for initial cost of providing LPG connections to BPL families.
New health protection scheme will provide health cover up to Rs. One lakh per family. For senior citizens an additional top-up package up to Rs. 30,000 will be provided.
3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.
‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.
National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations Allocation of Rs. 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal
Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.

2/29/2016

Downloaded from www.exampundit.in

3

Budget 16-17

EDUCATION, SKILLS AND JOB CREATION










62 new Navodaya Vidyalayas will be opened
Sarva Shiksha Abhiyan to increasing focus on quality of education
Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions
Higher Education Financing Agency to be set-up with initial capital base of Rs. 1000 Crores
Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up. SKILL DEVELOPMENT
Allocation for skill development – Rs. 1804. crore.
1500 Multi Skill Training Institutes to be set-up.
National Board for Skill Development Certification to be setup in partnership with the industry and academia
Entrepreneurship Education and Training through Massive Open Online Courses

JOB CREATION





GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme.
Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act
100 Model Career Centres to operational by the end of 2016-17 under National Career Service.
Model Shops and Establishments Bill to be circulated to States.

INFRASTRUCTURE AND INVESTMENT





Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during
2016-17.
India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kms of National Highways in 2016-17.
Allocation of Rs. 55,000 crore in the Budget for Roads. Additional Rs. 15,000 crore to be raised by
NHAI through bonds.
Total outlay for infrastructure - Rs. 2,21,246 crore.

FINANCIAL SECTOR REFORMS



A comprehensive Code on Resolution of Financial Firms to be introduced.
Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the
Finance Bill 2016.

2/29/2016

Downloaded from www.exampundit.in

4

Budget 16-17











A Financial Data Management Centre to be set up.
RBI to facilitate retail participation in Government securities.
New derivative products will be developed by SEBI in the Commodity Derivatives market.
Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts.
Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking schemes. Increasing members and benches of the Securities Appellate Tribunal.
Allocation of Rs. 25,000 crore towards recapitalisation of Public Sector Banks.
Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs. 1,80,000 crore. General Insurance Companies owned by the Government to be listed in the stock exchanges.

GOVERNANCE AND EASE OF DOING BUSINESS






Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the
Aadhar framework to be introduced.
Introduce DBT on pilot basis for fertilizer.
Automation facilities will be provided in 3 lakh fair price shops by March 2017.
Price Stabilisation Fund with a corpus of Rs. 900 crore to help maintain stable prices of Pulses.
“Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.

BOOST EMPLOYMENT AND GROWTH








Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income
Tax Act to Rs. 2 crores to bring big relief to a large number of assessees in the MSME category.
Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to Rs.50 lakh.
100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019.
MAT will apply in such cases.
Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.
Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health
Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral
Palsy, Mental Retardation and Multiple Disability.
Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.

2/29/2016

Downloaded from www.exampundit.in

5

Budget 16-17

MOVING TOWARDS A PENSIONED SOCIETY







Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of
National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.
In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.
Limit for contribution of employer in recognized Provident and Superannuation Fund of Rs. 1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees.
Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.

PROMOTING AFFORDABLE HOUSING





100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years.
MAT to apply.
Deduction for additional interest of Rs.50,000 per annum for loans up to Rs.35 lakh sanctioned in
2016-17 for first time home buyers, where house cost does not exceed Rs. 50 lakh.

TECHNOLOGY FOR ACCOUNTABILITY




Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.
Interest at the rate of 9% p.a against normal rate of 6% p.a for delay in giving effect to Appellate order beyond ninety days.
‘e-Sahyog’ to be expanded to reduce compliance cost, especially for small taxpayers.

2/29/2016

Downloaded from www.exampundit.in

6

Similar Documents

Premium Essay

Economic

...Economic Decisions Individuals and societies alike face many decisions. Individuals tend to make economic decisions when faced with trade-offs, and because of that, individuals are required to compare costs and benefits of their alternative actions referred to as the opportunity cost. Rational individuals tend to think of marginal change during the process of decision-making, and therefore, may respond differently to incentives whilst making economic decisions. This paper discusses the four principles of economics, a decision associated with marginal change, the incentive(s) that could lead to making different decision, and finally, how the principles of economics affect decision-making, interaction and the workings of the economy as whole. The Principles of Economics A trade-off is often referred to as the “technique of reducing or forgoing one or more desirable outcomes in exchange for increasing or obtaining other desirable outcomes to maximize the total return or effectiveness under given circumstances.” (BusinessDictionary.com, 2009) In brief, individuals choose something over something else, or give up something in order to get something else. Whatever “it” is that individuals sacrifice in order to get something, is generally “its” cost, and cost is often linked and associated with money, an opportunity cost however, could be the cost of anything i.e. time or health sacrificed in order to get something. Marginal changes are incremental adjustments individuals make...

Words: 853 - Pages: 4

Premium Essay

Economics

...ECON3007 Economic Policy Analysis Topic: Institutions and Economic Reforms Wendy Carlin This topic focuses on the role of institutions in economic growth and the implications of this for the design of economic reforms. We examine why some large-scale economic reforms have been surprisingly successful and others have been disappointing. It will be argued that the consistency between existing institutions in the economy and the reforms is an important factor in determining reform success. We look at property rights and contracting institutions, at the experience of transition economies – both in the former Soviet bloc and China and at reform policies including privatization. The empirical techniques that we study include cross-sectional and panel regressions using aggregate (i.e. country-level) data and micro-economic data. Key readings: Institutions and growth: Acemoglu, D., Johnson, S. and Robinson, J. A. (2001) (AJR) “The Colonial Origins of Comparative Development: An Empirical Investigation”. The American Economic Review, Volume 91, Number 5. Use the UCL Economic Journals page and choose the Atypon link. Acemoglu, D., Johnson, S. (2005) (AJ) “Unbundling Institutions” Journal of Political Economy Volume 113, Number 5, 949-995. Use the UCL Economic Journals page. Deaton, A. (2009) ‘Instruments of Development: Randomization in the Tropics and the Search for the Elusive Keys to Economic Development’. NBER Working Paper 14690. Use google. Transition: China and......

Words: 1359 - Pages: 6

Free Essay

Economics

...What is Econometrics? Econometrics is a rapidly developing branch of economics which, broadly speaking, aims to give empirical content to economic relations. The term ‘econometrics’ appears to have been first used by Pawel Ciompa as early as 1910; although it is Ragnar Frisch, one of the founders of the Econometric Society, who should be given the credit for coining the term, and for establishing it as a subject in the sense in which it is known today (see Frisch, 1936, p. 95). Econometrics can be defined generally as ‘the application of mathematics and statistical methods to the analysis of economic data’, or more precisely in the words of Samuelson, Koopmans and Stone (1954), ... as the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference (p. 142). Other similar descriptions of what econometrics entails can be found in the preface or the introduction to most texts in econometrics. Malinvaud (1966), for example, interprets econometrics broadly to include ‘every application of mathematics or of statistical methods to the study of economic phenomena’. Christ (1966) takes the objective of econometrics to be ‘the production of quantitative economic statements that either explain the behaviour of variables we have already seen, or forecast (i.e. predict) behaviour that we have not yet seen, or both’. Chow (1983) in a more recent textbook succinctly defines econometrics ‘as...

Words: 736 - Pages: 3

Premium Essay

Economics

...Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, "management of a household, administration") from οἶκος (oikos, "house") + νόμος (nomos, "custom" or "law"), hence "rules of the house(hold)".[1] Political economy was the earlier name for the subject, but economists in the late 19th century suggested "economics" as a shorter term for "economic science" that also avoided a narrow political-interest connotation and as similar in form to "mathematics", "ethics", and so forth.[2] A focus of the subject is how economic agents behave or interact and how economies work. Consistent with this, a primary textbook distinction is between microeconomics and macroeconomics. Microeconomics examines the behavior of basic elements in the economy, including individual agents (such as households and firms or as buyers and sellers) and markets, and their interactions. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment, inflation, economic growth, and monetary and fiscal policy. Other broad distinctions include those between positive economics (describing "what is") and normative economics (advocating "what ought to be"); between economic theory and applied economics; between rational and behavioral economics; and between mainstream economics (more "orthodox" and dealing with the "rationality-individualism-equilibrium......

Words: 290 - Pages: 2

Premium Essay

Economics

...classified and analyzed. The first studies on the economic impact of port activity emerged in the United States in the second half of the 1960s. The ports of New York and New Jersey were the first to be taken into consideration. In the 1970s, the first methodological discussions took place, based on the development of the input–output model and its application to the measurement of the impact of ports. The main stances opposing this kind of study were advocated by Robert C. Waters, while those in favour had Semoon Chang as their main champion, and most of Waters’ criticisms were dealt with. 1. PORT ECONOMIC IMPACTS Ports contribute much to their economies, and port economic impact analysis is the major tool for documenting those contributions. The primary objective of port impact studies is to inform the public of the importance of port services, and additional benefits that may exist vary with particular studies. And also, the decision of local governmental agencies to construct port facilities is often preceded by a port economic impact study. The majority of existing port impact studies begin with definitions of port impacts, as an improper notion of port impact might well lead to an entirely wrong estimation of the total economic impact of a port. One of the major challenges in port impact studies is to identify the port-related industries and find out the degree of port dependency of these industries. Generally, economic impacts of port on the local economy......

Words: 5423 - Pages: 22

Premium Essay

Economics

...Economics is the social science that analyzes the production, distribution, and consumption of goods and services. Economics explains how people interact within markets to get what they want or accomplish certain goals. An economy exists for two basic reasons, firstly, human wants for goods and services are unlimited and secondly, productive resources with which to produce goods and services are scarce. An economy has to decide how to use its scarce resources to obtain the maximum possible satisfaction of the members of the society. Economics is studied so you can become a well-informed citizen. Political and social leaders often develop policies that have broad economic effects. International relations are also dominated by economic concerns. Economic knowledge is needed if you are to understand the effects of taxation, unemployment, inflation, welfare, economic growth, exchange rates, or productivity. We also study economics because it helps the individual make more informed decisions. Consumers, workers, and investors usually make wiser choices if they understand the likely economic effects of the choice to be made. Business executives have more insight for making decisions if they understand how the economy works and the likely effects of economic conditions on a business. Hypotheses are propositions that are tested and used to develop economic theories. Highly reliable theories are called principles or laws. Theories, principles, and laws are meaningful......

Words: 259 - Pages: 2

Premium Essay

Economics

...Finance is based on economics.  Therefore, to properly understand financial markets and their behavior one must first understand economics.   Economics at its core is concerned with the production, distribution, trade and consumption of goods and services.   To put this in human terms we can say that economics is the science that arises out of the interplay between limited resources and unlimited human wants and needs. There are two basic ways to view economics.  There is the broad and distant view, which attempts to view things in aggregate for a society at large.   We call this view “Macroeconomics”.  Macroeconomics is concerned with the status of the economy as a whole.  Thus, it looks at overall employment of a general population or overall income of a nation as opposed to a more focused view of a population segment or specific industry.  This view is helpful because it is only by this kind of analysis that we can see the general trends which a society or nation is following.   Macroeconomic theory and analysis is employed most often by Governments and institutions, which have a responsibility to make policies and decisions which affect the economy as a whole. Some terms you may have heard of which concern themselves with the macroeconomic view of the economy are Gross National Product, Inflation, Consumer Price Index and Fiscal Policy.   The meaning of each of these is listed below. Gross National Product – This is the most common measure of economic productivity for......

Words: 531 - Pages: 3

Premium Essay

Economics

...definitions. More often than not, development is measured as economic growth. Economic growth basically explores the increase in the productive capacity of any state. This upward change in productive capacity is usually ascertained in terms of Gross Domestic Product as well as Gross National Product. The former takes a look at the total final output of goods and services produced in a year and the latter is a measure of income earned by both domestic and non-resident citizens. Sad it is to know, that the popularly used measure of development; economic growth, does not give a detailed view of the economic atmosphere of any nation. Using growth as a measure of development does not tell us much about the actual state of the economy. Development goes beyond the mere knowledge of certain economic indices. It is concerned with structural changes that go a long way to improving the conditions of living of all and sundry. One implication of measuring development as growth is the neglect of the level of income distribution in the economy. In spite of the positive changes in the levels of economic growth over accounting periods, is there really an equitable income distribution? Are there few poor people? Economic growth indices such as GNP and GDP merely show the overall income of the state but fail to reveal how much each person in the economy actually possesses. Akin to that, international comparisons of economic performance become less representative. This is due to......

Words: 795 - Pages: 4

Premium Essay

Economics

...Implications of Economics and Policy for Health Professionals Katrina Hill Health Policy and Economics Dr. Shana Lavarreda September 7, 2014 Discipline of Health Economics Many years ago healthcare and its delivery system were limited in care for patients or treatment options for physicians. The procedure of care includes diagnosis, treatment, prevention, rehabilitation, and palliative care (Buchbinder, 2012). However, over the years there is much to be learned from the discipline of health economics which vary from studies, practices, and demand by discipline of health promotion. Unfortunately, health promotion has not always gotten the attention by health economists because contributing factors lack demand, scare resources, and unclear utility analysis of health care (Teiltelbaum & Wilensky, 2013). As with any given system, values contribute to decision making route in which delivers thoughtful insight into how health operates from a planned and funded context to address an extensive scope of matters in a clear systematic manner. Benefits of Health Care Financing and Delivery There are many profits to understanding health policy or governmental involvement in health care financing and delivery. Financial or economic assessment consists of a set of methods designed at inspecting other ways of action that aids in making choices in terms of their costs and benefits (Getzen, 2013). In theory, these practices are useful to promote......

Words: 596 - Pages: 3

Free Essay

Economic

...Thesis Economics Thesis The goal of an economics thesis is to solve a problem regarding the exchange of goods and services in an innovative way. To this end, the student may explore macroeconomics, the study of large economics systems, or microeconomics, the study of person-to-person exchanges of goods and services, in a completely unique manner or in a manner that simply expands on or addresses previous ideas. Students who are struggling to develop ideas for their economics theses may benefit from asking themselves what problems they have a passion for solving. For example, perhaps the student feels greatly irritated about gas prices and could develop an idea on how to cut costs. Perhaps the student has a fascination with the failure of communism and would like to develop a thesis on where the economic system went wrong and why. If the student cannot identify a topic that would produce a viable economics thesis, he or she should talk with the major professor and see if together they can brainstorm a usable idea. Economics theses may have concerns that most disciplines do not have, particularly in formatting. Because pictures can carry a great deal of information in a much more succinct way than text and because economics theses often handle highly complex issues, writers of economics theses may find it useful to include a number of charts, graphs, and tables both in appendices and in the body of the thesis itself. Depending on the complexity of those graphics, the......

Words: 344 - Pages: 2

Premium Essay

Economics

...and the industry price is lower than the monopoly price. The total economic profit made by the industry is also smaller than the monopoly’s economic profit. Therefore the complier incurs an economic loss while the cheater gains economic profit. If since both firms have an incentive to cheat as long as price exceeds marginal cost. In this price-fixing game, it will occur a situation that both firms cheat. If both firms produce more cigarettes than the number agreed, the industry output will be increased, the price of cigarettes will fall and both firms makes zero economic profit, as shown in the figure. -In monopolistic competition a company in the short run, makes its output and price decision just like a monopoly company does. The following figure illustrates the monopolistic competition in the short run. As you can see, when the marginal revenue equals its marginal cost (MR = MC), the firm charges the highest price (P) that buyers are willing to pay for this quantity, which is highly higher than the average total cost (ATC). Therefore the firm makes greatest profit and the consumer pay price that is higher than the market equilibrium price. However, a firm may face a level of demand for its product that is too law for it to make an economic profit. As it shows in the figure, the price that consumers are willing to pay for this output is lower than the average total cost ( P < ATC). The firm makes economic loss. On the other hand, in the long run, the other firms......

Words: 620 - Pages: 3

Premium Essay

Economics

...Free Essays Home Search Essays FAQ Contact Search: Related Essays - Economics of Information - Introduction There have been discussions among scholars in developed countries regarding economics of information. Developed countries includes Australia, New Zealand, United States, Ireland, Germany...[ view ] - Economics and Growth - The demand curve is likely to change upwards or rise as a result of changes in a number of factors. One, if there is a move up in the price of an alternative commodity, or decrease in price of the giv...[ view ] Classical Economics vs. Keynesian Economics :: 5 Works Cited Length: 1187 words (3.4 double-spaced pages) Rating: Red (FREE) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - My research of Classical Economics and Keynesian Economics has given me the opportunity to form an opinion on this greatly debated topic in economics. After researching this topic in great lengths, I have determined the Keynesian Economics far exceeds greatness for America compared to that of Classical Economics. I will begin my paper by first addressing my understanding of both economic theories, I will then compare and contrast both theories, and end my paper with my opinions on why I believe Keynesian Economics is what is best for America. Classical Economics is a theory that suggests by leaving the free market alone without human intervention; equilibrium will be obtained. This......

Words: 1342 - Pages: 6

Premium Essay

Economics

...relations such as China, with a G.D.P growth rate or economic growth rate of nearly 9% a year, China has a faster economic growth rate by 6x. Now what do these numerical figures mean in contrast to leaving the EU? Well, whether or not to leave the EU has a massive effect on our economy, influenced by trade. But how does this correlate to affecting British businesses? Well a faster, well protected economy will allow businesses to run faster, trade faster, produce faster, and become efficient, which in plain English means the business would become better off. My point is, countries which have a very high G.D.P growth rate such as China and India, that are not apart of the EU, achieve great economic figures and statistics, and are economically self-sufficient. Does this mean that Britain would be better not being in the EU? Would this effect trade? Would it affect the economy? Would it affect how well business do? The aim of this project is to determine the best alternative to what we should do as an individual, as a nation, and provide evidence for this. I will be analysing every policy related to the topic, in order to reach an unbiased, and thorough conclusion. I will be assessing the basic economic benefits and negatives, in relation to leaving or staying in the EU, and will be developing these ideas in an economic point of view. I will do this by discussing, and explain key economic theories, and basic Macro economic principles, and how this can be influenced by the......

Words: 788 - Pages: 4

Free Essay

Economics

...Scarcity & Opportunity Cost Economics is a very important field of study in modern society. It helps us to understand the choices we have to make to satisfy our unlimited wants and needs to have a better life. Microeconomics is the study of households, firms, and government in specific markets. One of the main problems economics tries to address is scarcity. Scarcity is the term economist use to describe a situation when the amount of something available is not sufficient to satisfy the desire or demand for it. Scarcity can be applied to all aspects of economics and is one of the most crucial points to understand. Because we are consumers in a free market, we live on income constraints or budgets. Limited income forces us to make choices about goods and services we will purchase, as well as goods and services we will forgo. As a society, we also experience scarcity. Societies face scarce economic resources. Economist classify these economic resources into four categories: land, labor, capital, and entrepreneurial ability. Land is considered to be not only physical land but also water, oil, wind, and all other natural resources. Labor would be described as not only the workforce, but the quality of the workers in the workforce. Capital is the facilities, tools, machinery, and any other components that go into manufacturing a good. Entrepreneurial ability is outlined by the people who exploit opportunities in markets. Entrepreneurs combine economic resources with creative......

Words: 657 - Pages: 3

Premium Essay

Economics

...3 different business/economic cycles – a total of 6 economic aggregates – which will include a recession period and an expansion period. I will choose the current economic cycle as the basis to compare the performance of the economy since December 2007 to that of the other 2 business cycles on the basis of the 6 Economic Variables. As a data consistency analysis measure, I will make use of data from Federal Reserve Economic Data (FRED) and National Bureau of Economic Research (NBER) websites in my research. In simple terms, an economic/business cycle refers to fluctuations in aggregate production, trade and activity over several months or years in a market economy. The economic cycle is the upward and downward movements of levels of gross domestic product (GDP) and refers to the period of expansions and contractions in the level of economic activities (business fluctuations) around its long-term growth trend. These fluctuations occur around a long-term growth trend, and typically involve shifts over time between periods of relatively rapid economic growth (an expansion or boom), and periods of relative stagnation or decline (a contraction or recession). Business cycles are usually measured by considering the growth rate of Real Gross Domestic Product (Real GDP). Despite being termed cycles, these fluctuations in economic activity can prove to be unpredictable. A. F. Burns and W. C. Mitchell, Measuring business cycles, New York, National Bureau of Economic Research,......

Words: 1457 - Pages: 6